Kraken CEO: $800M Raise Driven by ‘Conviction’ After FTX 2.0 Rejection

Kraken has secured one of the largest funding rounds in the current crypto cycle. The exchange raised $800 million, achieving a confirmed valuation of $20 billion. This milestone arrives alongside a new revelation: Kraken was shortlisted for the FTX 2.0 restart tender but was rejected by bankruptcy lawyers.

Co-CEO Arjun Sethi shared the strategy behind this raise. He detailed the years of discipline and risk required to build a resilient financial institution. His account illustrates how conviction, rather than favorable market cycles, shaped Kraken’s trajectory.

Long Road Built on Data, Resilience, and High-Conviction Bets

Sethi explained that his worldview formed long before the fundraise. He spent years working with quantitative experts who helped build major technology companies. Hence, he relied on>Raising $800M: From Tribe Capital to Citadel Securities

During the downturn, Sethi strengthened his relationship with Kraken founder Jesse Powell. Both leaders increased their commitments when others hesitated. Moreover, Sethi joined Kraken as co-CEO and invested personal and family capital into the company. Tribe Capital added more support, and early investors backed the first tranche of funding with more than $100 million.

Citadel Securities later joined the second tranche, lifting the total raise to $800 million. The partners aligned around Kraken’s long-term vision, which now focuses on a unified liquidity system and new financial architecture for global users.

Why Lawyers Rejected Kraken’s FTX 2.0 Bid

Sethi also addressed Kraken’s exclusion from the FTX 2.0 tender. He noted that three well-funded companies, including Kraken, were shortlisted. However, they were rejected by the lawyers involved in the process.

This decision reflected legal preferences rather than financial strength. It also demonstrated that Kraken could expand without relying on distressed assets. Sethi stressed that the real achievement was maintaining values while scaling through volatility.